How is a fix-and-flip loan different from a DSCR loan?

Fix-and-flip loans are short-term and project-focused, while DSCR loans are longer-term and evaluate rental cash flow. Many investors use a fix-and-flip loan first, then refinance into a DSCR loan if they keep the property.

Loan Program

Fix & Flip Loans

Published January 15, 2026Updated January 15, 2026

By The Simple DSCR Team

Fix-and-flip loans are short-term, business-purpose loans used to acquire and renovate a property for resale or later refinance. Financing may cover a portion of the purchase and renovation budget, with terms based on the project. Structure, leverage, and eligibility vary by lender, project, and jurisdiction.

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Who It's For

Investors acquiring and renovating properties for resale
Borrowers who need short-term project financing
Investors planning a renovate-then-refinance strategy

Common Uses

Purchasing and renovating a distressed or dated property
Funding a portion of a renovation budget
Bridging to a sale or a longer-term refinance

Qualification Overview

Fix-and-flip programs generally focus on the project: acquisition cost, renovation budget, and expected outcome.
Borrower experience, credit, and liquidity are typically reviewed.
Structure and requirements vary by program and investor.

Common Variables

Purchase price and renovation budget
Projected after-repair value support
Borrower experience and liquidity
Project timeline

Eligible Property Types

Single-family properties
2–4 unit properties
Certain eligible residential projects

Common Documentation

Renovation scope and budget
Project experience information (program-dependent)
Entity documents when vesting in an LLC

Loan Purpose

Short-term business-purpose financing for acquisition and renovation. Not a consumer mortgage.

Potential Advantages

Short-term structure aligned with project timelines
May finance a portion of renovation costs
Can support a renovate-then-refinance strategy

Potential Considerations

Short-term financing typically carries different pricing than long-term loans
Project delays and cost overruns are borrower risks
An exit strategy (sale or refinance) is important

Frequently Asked Questions

How is a fix-and-flip loan different from a DSCR loan?: Fix-and-flip loans are short-term and project-focused, while DSCR loans are longer-term and evaluate rental cash flow. Many investors use a fix-and-flip loan first, then refinance into a DSCR loan if they keep the property.

Program details are general and for educational purposes only. This is not a commitment to lend, an offer, or specific loan terms. All programs are business-purpose investor loans subject to underwriting, property review, investor guidelines, and applicable law. Availability, eligibility, and terms vary by state and transaction. Simple DSCR is an assumed business name of WooHoo Mortgage LLC, NMLS #2347993.